FY2026 EPS Estimates for Novartis Lifted by Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Novartis to $8.99 from $8.95, above the current consensus estimate of $8.85.
• Novartis reported quarterly EPS of $2.41 on revenue of $14.95 billion, with a 23.29% net margin and 38.56% return on equity.
• Analyst sentiment remains mixed: six analysts rate the stock Buy and ten rate it Hold, producing a consensus Hold rating and average price target of $153.

Novartis AG (NYSE:NVS - Free Report) - Stock analysts at Erste Group Bank raised their FY2026 earnings per share estimates for Novartis in a report issued on Tuesday, September 8th. Erste Group Bank analyst H. Engel now expects that the company will post earnings of $8.99 per share for the year, up from their prior estimate of $8.95. The consensus estimate for Novartis' current full-year earnings is $8.85 per share.

Novartis (NYSE:NVS - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The company reported $2.41 EPS for the quarter. Novartis had a return on equity of 38.56% and a net margin of 23.29%.The company had revenue of $14.95 billion for the quarter.

A number of other research analysts have also weighed in on the stock. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Novartis in a research note on Friday, July 24th. Royal Bank Of Canada started coverage on shares of Novartis in a research report on Tuesday, September 8th. They set a "sector perform" rating for the company. Deutsche Bank Aktiengesellschaft lowered shares of Novartis from a "buy" rating to a "hold" rating in a report on Tuesday, September 8th. HSBC set a $136.00 price objective on shares of Novartis in a research report on Thursday. Finally, Citigroup reiterated a "buy" rating on shares of Novartis in a report on Wednesday, July 22nd. Six equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $153.00.

Novartis Price Performance

Shares of NVS opened at $137.22 on Monday. The stock has a 50 day simple moving average of $154.18 and a 200 day simple moving average of $152.92. Novartis has a 52-week low of $121.57 and a 52-week high of $170.46. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.67 and a current ratio of 0.86. The firm has a market capitalization of $261.84 billion, a PE ratio of 20.70, a P/E/G ratio of 2.66 and a beta of 0.45.

Hedge Funds Weigh In On Novartis

Hedge funds have recently made changes to their positions in the business. Brighton Jones LLC lifted its position in shares of Novartis by 76.5% in the fourth quarter. Brighton Jones LLC now owns 6,153 shares of the company's stock worth $599,000 after purchasing an additional 2,666 shares in the last quarter. AQR Capital Management LLC grew its position in Novartis by 102.8% in the first quarter. AQR Capital Management LLC now owns 22,573 shares of the company's stock valued at $2,516,000 after purchasing an additional 11,444 shares in the last quarter. Empowered Funds LLC acquired a new stake in Novartis in the 1st quarter valued at $1,764,000. Sivia Capital Partners LLC increased its stake in Novartis by 48.0% in the 2nd quarter. Sivia Capital Partners LLC now owns 7,959 shares of the company's stock valued at $963,000 after buying an additional 2,581 shares during the last quarter. Finally, Schnieders Capital Management LLC. bought a new stake in Novartis during the 2nd quarter worth about $202,000. 13.12% of the stock is owned by institutional investors.

Key Stories Impacting Novartis

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: The stock showed signs of rebounding after its steep selloff, suggesting some investors may view the decline as an overreaction and remain confident in Novartis’s established medicines portfolio. Novartis Rebounds as $30 Billion Wipeout Draws Board Challenge
• Neutral Sentiment: Investors are focusing on how Novartis deployed roughly $30 billion in recent deals, as several acquired programs have encountered clinical setbacks. The scrutiny could lead to changes in capital-allocation priorities, deal approval processes or board composition. Focus: Novartis investors turn spotlight on M&A after trial setbacks
• Negative Sentiment: Experimental drug del-desiran failed to produce a statistically significant improvement in a late-stage trial for myotonic dystrophy type 1. The failure removes a potentially important growth asset and adds to concerns about Novartis’s pipeline. Drug Trial Setbacks Raise Questions Over Novartis’s Growth Pipeline
• Negative Sentiment: Del-desiran was the second major trial setback in a short period, contributing to a sharp weekly selloff and making investors question whether acquisitions are generating sufficient pipeline value. Deutsche Bank responded by cutting its view on the stock. Novartis extends selloff as Deutsche Bank cuts on twin drug trial setbacks
• Negative Sentiment: A major shareholder has called for a board shake-up, arguing that stronger oversight is needed after the trial failures and share-price decline. The challenge adds reputational and execution risk for management. Major Novartis shareholder calls for board shake-up after drug trial setbacks

About Novartis

Novartis AG NYSE: NVS is a Switzerland-based pharmaceutical company focused on discovering, developing and commercializing innovative medicines. The company's portfolio addresses major disease areas including cardiovascular, renal and metabolic conditions, immunology, neuroscience, oncology and hematology.

Novartis markets medicines such as Entresto for certain heart conditions, Cosentyx for inflammatory diseases, Kisqali for breast cancer, Kesimpta for multiple sclerosis, Leqvio for cholesterol management, Pluvicto for certain prostate cancers and Scemblix for chronic myeloid leukemia.

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